Washington, DC/Moscow, Russian Federation,
May 30, 2002Peter Woicke, head of the International Finance Corporation
(IFC) and Managing Director of the World Bank Group, started today a two-day
visit to Russia, to meet government and business leaders in order to reaffirm
IFC’s continued commitment to private sector development in the country.
IFC, the private sector development arm of the World Bank Group, has worked
actively to support the development of a strong private sector in Russia
since it became a member in 1993. IFC has invested over $136 million in
equity and provided loans totaling $448 million to the private sector in
Russia, as well as mobilizing $110 million from other sources of financing.
During his visit, Peter Woicke will meet key government officials, including
the Advisor to President Vladimir Putin, Andrei Illarionov; the Minister
of Finance, Alexei Kudrin; the Deputy Chairman of the Government, Victor
Khristenko, and the Minister of Economic Development and Trade, German
Gref. Mr. Woicke will also meet IFC clients and members of the local business
In his meetings, Peter Woicke plans to discuss IFC’s role in supporting
government efforts to deepen economic reforms and encourage further development
of the private sector. Key IFC priorities in Russia include developing
and strengthening financial institutions, attracting foreign investment
and technology, working with local partners to improve transparency and
corporate governance, and expanding efforts to improve the business environment,
particularly for small and medium size enterprises (SMEs).
IFC investment activity in Russia spans across a wide range of sectors,
including mining, food processing, pulp and paper, manufacturing, oil and
gas, power, telecommunications, retail trade, health care, banking, leasing
and housing finance.
The Corporation has been actively involved in the development of the Russian
financial sector since the early 1990’s, and helped set up several private
equity funds and credit lines to finance small and medium size enterprises
Recent investments include Probusiness bank, Russian Standard Bank, and
Delta Credit Bank in Moscow, and NBD Bank in Nizhny Novgorod. In trade
finance, IFC recently approved a loan to establish, with West LB, a pre-export
financing facility for Russian companies.
IFC’s investments in both real and financial sectors are usually accompanied
by hands-on technical assistance provided through the Private Enterprise
Partnership (PEP), an IFC-managed, donor-funded technical assistance program
directed toward local enterprises in Russia and Eastern Europe. The objective
of this approach of combining investments with a package of technical assistance
is to promote institutional development and help rebuild confidence in
IFC’s mission (http://www.ifc.org/)
is to promote sustainable private sector investment in developing countries,
helping to reduce poverty and improve people's lives. IFC finances
private sector investments in the developing world, mobilizes capital in
the international financial markets, and provides technical assistance
and advice to governments and businesses.
Since its founding in 1956, IFC has committed more than $31 billion of
its own funds and arranged $20 billion in syndications for 2,636 companies
in 140 developing countries. IFC’s committed portfolio at the end
of FY01 was $14.3 billion.
investments in Russia